Sources Event Sub-Event

PORC
Purchase Order Receipt

PORC
PUR
Purchase Order
Oracle Purchase
Receipt

RCVI
Internal Order Receipt

IPVX
IPV Transfer to Inventory

OMSP

OMSO SHPI
OM Order Internal Order Shipment
Order Management Management
Shipments

RMA
Customer Return

IADJ
IADJ
Inventory
Inventory Adjustments
Adjustments

XFER
Inventory Transfers

IC
Inventory Control IMVT
Inventory
Movement
 XFER
Inventory Transfers

IC
Inventory Control IMVT INTA
Inventory Inventory Movement Intra
Movement Company

INTE
Inventory Movement Inter
Company

RVAL RVAL
CM Cost Revaluation Cost Revaluation
Cost Management CADJ CADJ
Cost Adjustment Cost Adjustment

RELE
Batch Release

STEP
Resource Step certification

CERT
Batch Certification

PM BTCH
Production Management Batch Processing

CLOS
Batch Close
`

Account Title Description

INV Inventory
ISP Receiving Inspection
PPV Purchase Price Variance
EXP Expense
AAC Accrued Acquisition Costs
ACV Acquisition Cost Variance
AAP Accrued Accounts Payable
RCA Resource Control Account
INV Inventory
ISP Receiving Inspection
PPV Purchase Price Variance
ITR Intransit Inventory
IOP Inter-Org Payables
IOR Inter-Org Receivables
FRT Freight Expense
XFC Transfer Credit for Internal Orders
PCO Product Cost
AAP Accrued Accounts Payable
PIN Profit in Inventory
IPF Inter-Org Profit
INV Inventory
IPA Invoice Price Adjustment
INV Inventory
PCO Product Cost
INV Inventory
ITR Intransit Inventory
IOP Inter-Org Payables
IOR Inter-Org Receivables
FRT Freight Expense
EXP Expense
XFC Transfer Credit for Internal Orders
PCO Product Cost
AAP Accrued Accounts Payable
PIN Profit in Inventory
PPV Purchase Price Variance
IPF Inter-Org Profit
INV Inventory
PCO Product Cost
ITR Intransit Inventory
IOR Inter-Org Receivables
INV Inventory
IVA Inventory Adjustments Expense
INV Inventory
XFR Inventory - Transfers
INV Inventory
XFR Inventory - Transfers
IVV Inventory Valuation Variance
INV Inventory
INV Inventory
IVV Inventory Valuation Variance
ICT Inventory - Inter-Company Transfer
INV Inventory
INV Inventory
ICT Inventory - Inter-Company Transfer
IVV Inventory Valuation Variance
INV Inventory
IRV Inventory Revaluation Variance
INV Inventory
ACA Actual Cost Adjustment
INV Inventory
WIP Inventory - Work In Progress
RCA Resource Control Account
IVV Inventory Valuation Variance
WIP Inventory - Work In Progress
RCA Resource Control Account
INV Inventory
WIP Inventory - Work In Progress
RCA Resource Control Account
IVV Inventory Valuation Variance
OVH Overhead Account
SUB Substitution Variance
USG Usage Variance
YLD Yield Variance
RSV Resource Substitution/ Method Variance
RUV Resource Usage/ Efficiency Variance
RMV Resource Manning Variance
CLS Batch Close Variance
WIP Inventory - Work In Progress
RCA Resource Control Account
ECO Evolution Variance
GOU Gain On Usage Variance
OHV Overhead Variance
INV

WIP

ICT

XFR

ITR

AAP

AAC
ISP

IOP

IOR

XFC

PIN

EXP

FRT
PCO

RCA

IVA

PPV

ACV

IVV

IRV
SUB

USG

YLD

CLS

RSV

RUV

RMV
ECO

GOU
The inventory value is calculated as the transaction quantity multiplied by the GL unit cost of an item. You can set up various accounts fo
different item GL classes to separate raw materials from finished goods or set up various cost component classes to distinguish material fr
processing costs. Inventory, Production, Cost Revaluation, Purchasing, and Sales Order Shipping transactions use the INV account.

When a production batch is released, materials are consumed and may not be returned to inventory. During that period, the ingredient va
shown as entries in the WIP account. The WIP account represents the value of ingredients that were assigned to a production batch but ha
been converted to product. Consumption of byproducts (either negative or positive) is also included. Production batch transactions use th
account.

The ICT account stores inventory movements as well as inventory which are in transit from a source warehouse. This account acts as a cle
account for movements and transfers. The inventory transactions use the ICT account.

Warehouse transfers use this account. It represents the value of inventory which is in transit between warehouses. Inventory transactions
XFR account. For Oracle Purchasing or Order Management Internal Orders, this account is set up by default at the organization paramete
specifically for From and To combination of organizations.

The default general ledger account used to hold the intransit inventory value. This is usually an asset account. For Oracle Purchasing or O
Management Internal Orders, this account is set up by default at the organization parameter or specifically for From and To combination
organizations.

This is a separate accrual account for acquisition costs. The AAP account represents the accrual amount for the liability created by a PO. T
estimated item price on the purchase order is used unless a price change on a receipt was entered; in that case the price change on the rece
overrides the PO estimated price. Purchasing transactions use the AAP account.

On the Event Fiscal Policy window for the sub-event RCPT, you can specify if a separate accrual account must be used for acquisition cost
separate account is not used, then this amount is combined with the AAP account. Purchasing transactions use the AAC account.
Purchasing lets you inspect items you receive from suppliers or customers before internal delivery. You can inspect any item or set up cer
to require inspection. This is setup in Receiving Options for every organization.

Represents the general ledger payables account used as an inter-organization clearing account for the receiving organization. For Oracle
Purchasing or Order Management Internal Orders, this account is set up by default at the organization parameter or specifically for From
combination of organizations.

Represents the general ledger receivables account used as an inter-organization clearing account for the shipping organization. For Oracle
Purchasing or Order Management Internal Orders, this account is set up by default at the organization parameter or specifically for from
combination of organizations.

Indicates charges associated with interorganization transfers. Tranfer credit is defined in shipping networks as a percentage which is appl
cost of the shipped quantity. The Subledger Update process books this value under XFC while booking Oracle Order Management and Or
Purchasing entries in OPM. This account title cannot be mapped in OPM.

When different operating units or business units within the same enterprise transfer goods to one another, a profit is recorded because of
difference in the shipping operating unit's cost and transfer price that is charged from the receiver. This profit is called Profit in Inventory.

Consider an example that you receive office supplies. Instead of impacting an asset account (such as inventory), the amount is reported us
EXP account to credit office supply expense for those items. The estimated item price on the purchase order is used unless a price change
receipt was entered; in which case the price change on the receipt overrides the PO estimated price. Purchasing transactions use the EXP a

A shipment-related charge added during ship confirmation and billed to the customer. Freight charges are not applicable to Internal Orde
are created using the internal requisitions. Since internal requisitions are the only way to create internal orders, the freight charges are not
subledger booking.
The product cost amount is calculated as the quantity shipped multiplied by the GL unit cost of an item. Shipments create credits to INV;
are reported as debits. Sales order shipping transactions use the PCO account.

Conceptually similar to the WIP account, the RCA account is a control account which displays the value of the resource being used for pro
It includes the value of resources, burdens, and cost allocation components of the cost of an item used for a batch. Production batch transa
use the RCA account.

When inventory is destroyed, for example, its value is calculated and reported in the IVA account. Inventory transactions use the IVA acc

On the Event Fiscal Policy window for the sub-event RCPT, you can optionally specify whether to calculate a purchase price variance. If t
is set, then the system determines the unit cost of a material by looking at the GL Item Cost for that item, warehouse, GL cost method, cos
calendar, and cost period and compares them with the unit price on the PO line. The estimated item price on the purchase order is used u
price change on a receipt was entered; in that case the price change on a receipt overrides the PO estimated price. The PPV item cost only
those cost components and analysis codes that are marked for inclusion in PPV for comparison purposes. Purchasing transactions use the
account.

The acquisition cost variance value represents the difference between the price and the cost for the acquisition costs. Purchasing transactio
the ACV account.

The inventory valuation variance value is the difference between the unit cost of inventory between a from warehouse and to warehouse t
involved in the transaction. Inventory transactions use the IVV account.

The cost revaluation process calculates the difference in value of an item in a specific warehouse due to changes in the unit cost from one p
another. Either the appreciation or depreciation change in value is expensed to the IRV account. Inventory or cost revaluation transactions
IRV account.
When a production batch is closed, the value of the substituted ingredients or missing ingredients is calculated. The system totals the ingr
that were used in the production batch that were not on the scaled cost formula, and the ingredients on the scaled cost formula that were n
in the batch. When an ingredient or byproduct is added to a production batch, its value is represented in the SUB account. Production bat
transactions use the SUB account with the standard cost method.

The usage variance value is the difference between the total cost of actual ingredient usage and scaled ingredient quantity on the cost form
calculated during a production batch closing. When a production batch uses a different amount of ingredient, then the USG account accum
this difference. The yield variance reports the difference in byproducts. If a different item is used, it is considered an Ingredient Substitutio
Variance usage. When the result is positive, this variance is debited with the value as a loss (expense) and when a result is negative it is cr
with the value as a gain (revenue). Production batch transactions use the USG account with the standard cost method.

A yield variance is calculated when a batch is closed. It displays the difference between the value at total cost of the actual output product
coproducts, and byproducts and the cost formula scaled output for a production batch. If different products are made by the batch than th
planned products, then this account displays the value of that difference. Production batch transactions use the YLD with the standard cos
method.

The amount in the batch close variance is used to clear the WIP account and could also include rounding amounts. One of the reasons for
non-zero close variance is that the batch is released in one cost period when the debit to WIP was valued at a particular cost, but the batch
certified in a later cost period when the credit to WIP for the same quantities is at a different cost. Production batch transactions use the CL
account.

With the Process Operation Control (POC) application enabled, this value represents substituted resource usage. It includes any resources
a batch which were not on the original costing formula routing and any resources onthe cost formula’s routing which were not used in the
Production batch transactions use the RSV account with the standard cost method.

With the Process Operation Control (POC) application, this value represents the difference between the actual resource usage in the batch
cost formula’s scaled resource usage. When the result is positive, this variance is debited with the value as a loss (expense) and when a res
negative it is credited with the value as a gain (revenue). Production batch transactions use the RUV account with the standard cost metho

With the Process Operation Control (POC) application, this value represents the difference between an actual resource count (that is, num
people or machines) usage in a batch and the resource count specified in the cost formula scaled routing. When a result is positive, this va
debited with the value as a loss (expense) and when a result is negative it is credited with the value as a gain (revenue). Production batch
transactions use the RMV account with the standard cost method.
Evolution Variance is the difference between the actual costing formula and the planned formula. This variance considers changes to ingr
batch size, routing, operation, activity factor, charges, and step quantities.

Occasionally, materials lose their financial value over a period of time. When such materials are used in production, you have a gain. This
posted as the gain on usage variance. The amount of gain is captured as the difference between the cost of fresh materials and the devalue
materials.